Every person who exercises any profession or is engaged in any trade or holds any appointment in the State is liable to remit ‘professions tax’ to the State Govt., on or before 30th of April each year. Liability to pay professions tax does not arise in case of persons who have attained an age of 65 years and above.

There are two ways in which a person may be held liable to remit professions tax:

1. If he is an Employer falling under the purview of professions tax; or
2. Any other person as prescribed in the Schedule

An Employer is liable to obtain the Certificate of Registration (RC) and every other person is liable to obtain the Enrolment Certificate (EC).

Every Employer holding an RC shall furnish to the assessing authority, a Return within 60 Days from the end of every financial year, and within twenty days from the expiry of each month a Statement shall be furnished by every employer accompanied by a treasury challan as proof of payment.

Also, every enrolled person holding an EC shall pay the tax annually as per the prescribed schedule (enclosed with this write up).

Consequences for failure to pay tax:

Interest at the rate of 1.25% for each month of delay along with Penalty as may be prescribed by the assessing authority.